The financial data, revealed in a public document in Luxembourg and reviewed by the New York Times, comes as the company is reportedly preparing to enter the streaming video market. That move could entice more advertising money, which would help alleviate the losses. Spotify blamed the losses on costs associated with product development, expansion and licensing, the Times reported.
Spotify has long claimed that it would be able to achieve profitability once it hits a certain number of paying customers. The fact that its losses seem to grow as it brings in more money seems counter to that notion. It now has 60 million total users, 15 million of which paid for the service. Read full article here.